THENERGO (D) : Trading Update Third Quarter 2011
Trading update Third Quarter 2011
11/17/2011| 02:30am US/Eastern
16 November 2011 - 18h00 CET - Regulated information
Antwerp - Thenergo (Euronext Brussels:
THEB), publishes its trading update for the third
2011. The full year 2010 results will be published on 30
During the third quarter and until today Thenergo has focused
on the strategy approved by the board of directors, as
described in the press release dated 31 August 2011 regarding
the half year results.
This strategy involved both the Thenergo NV holding company
and Thenergo's various divisional
activities: Groeikracht, MyPower and Services.
Groeikracht units provide horticultural companies with
energy. The CHP units are controlled as a function of the
demand for heat in the greenhouse, the CO2 requirements of
the crop and the electricity required for lighting during the
winter months. Thenergo currently manages 22
Groeikracht units in Belgium and the Netherlands.
The results deriving from the Groeikracht units are
influenced by electricity, gas and certificate prices. No
significant improvement in prices was noticed during the
third quarter compared to the first half of this year. There
is still only a small difference between the price of gas and
electricity. The long-term contracts for these energy
products, as these are offered on the energy market, do not
show any significant improvement during 2012 and 2013.
There are also the CHP certificates that are produced, for
which the market is virtually non-existent. In general,
account is only taken of the guarantee price.
These factors directly impact on the profitability of the
The horticulture sector also, in the third quarter,
experienced the consequences of the difficult vegetable
season. Vegetable prices fell in the second quarter. While it
is true that the direct causes of this fall in prices
disappeared during the third quarter, the after-effects
continued during the entire quarter. Things only went
reasonably back to normal in October. The growing season is
now reaching its end and the new growing season will start.
It is necessary to wait for the new harvest during this
period of three to four months. This situation has further
affected the solvency of our partner horticulturalists and
their ability to pay the heating bills to the Groeikracht
The result is that Thenergo, as announced in its report at
the end of August, has commenced proactive discussions with
its stakeholders, including horticulturalists and the
financing banks. In this respect we will examine the actions
that can be undertaken in order to improve the profitability
of the Groeikracht units, and at the same time reduce the
guarantees that Thenergo has to provide in the context of the
financing agreements. This could result in assets being sold.
At the moment these discussions are on-going and we are
looking at various options. One loss-making Groeikracht unit
was sold to a partner horticulturalist in this context.
MyPower supplies heat and electricity to industrial and
service companies as well as to public companies with an
energy-intensive production process and/or high heat
Thenergo currently has one installation in this segment,
which was generating energy in line with expectations during
the third quarter of 2011.
Thenergo offers its clients an extensive service package for
the management of decentralised production units. This not
only involves consultation and administration, but also
management of the production unit and energy portfolio.
We have made a clear choice to move the focus to energy
portfolio consultancy and management. The previously
announced investments in this segment continued. The
objective is to develop a service platform with which to
offer a complete product to the various decentralised
producers and consumers. It was decided in line with the
segmentation strategy that was put on the
rails in 2010 to accommodate this future-oriented activity in
a separate segment during the fourth quarter of 2011.
The restructuring of the holding continued in the third
quarter. Our headcount was reduced by not replacing departing
employees. The recurring holding cost was more than halved
compared to the same period last year.
Based in Belgium, Thenergo is a fully integrated and
independent developer and operator of sustainable energy
projects. Thenergo creates value for its partners and
shareholders as a one-stop provider of sustainable energy
For more information, please contact:
T.: +32 3 292 96 96
Gateway House, Brusselstraat 59
This press release is available on our website
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